USDOT Threatens to Pull New York Highway Funding

The Trump administration wants the state to kill New York City’s congestion pricing program despite its demonstrated success.

1 minute read

April 24, 2025, 5:00 AM PDT

By Diana Ionescu @aworkoffiction


New York City traffic on elevated highway at sunset.

deberarr / Adobe Stock

In a letter to New York Governor Kathy Hochul, U.S. Transportation Secretary Sean Duffy warned that USDOT would withhold federal highway funding if New York City’s congestion pricing program continues.

Writing in Smart Cities Dive, Dan Zukowski explains that “Failing compliance, Duffy said the Federal Highway Administration would halt environmental approvals and advance construction authorizations for projects in the borough of Manhattan, except for safety projects,” and USDOT would also withhold approvals for Transportation Improvement Program amendments that could impact regional projects.

In a response letter, the Governor’s office remained defiant, saying the cameras are staying on. Traffic in Manhattan dropped by 11 percent year over year, while the economic benefits of faster travel times could be over $1 billion.

According to MTA Chair and CEO Janno Lieber, “we have received Secretary Duffy’s letter setting yet another new deadline and are evaluating MTA’s legal options, given that the legal issues raised in the letter are already appropriately before a federal judge.”

Wednesday, April 23, 2025 in Smart Cities Dive

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